06-12-2010, 11:55 PM
its so kind of u sir to give ur time in replying..
from your reply i have 2 queries, firstly how did we get incremental dep of Rs. 40 ? ( i thought it was Rs.20 as previously the dep expense was Rs. 100 and dep expense subsequent to revaluation is Rs. 120 so there is a difference of Rs. 20 as per my understanding )
secondly, i m still confused as to why are we recording deferred tax on revaluation as the surplus on revaluation will not be deductible for tax purpose . hence it must be permanent difference rather a temporary difference. so there must be no question of def tax on surplus.
thanks once again for being so helpful !
from your reply i have 2 queries, firstly how did we get incremental dep of Rs. 40 ? ( i thought it was Rs.20 as previously the dep expense was Rs. 100 and dep expense subsequent to revaluation is Rs. 120 so there is a difference of Rs. 20 as per my understanding )
secondly, i m still confused as to why are we recording deferred tax on revaluation as the surplus on revaluation will not be deductible for tax purpose . hence it must be permanent difference rather a temporary difference. so there must be no question of def tax on surplus.
thanks once again for being so helpful !
